Investing Together for a Better Tomorrow:Coca-Cola Discusses Growth Prospects at CAGNY

Coca-Cola leaders recently took center stage
to talk about growth – where it is and where it will be – at the annual Consumer
Analyst Group of New York (CAGNY) conference. Last week’s investor forum was
held in Boca Raton, Fla. Gary Fayard, Chief Financial Officer, Ahmet Bozer,
President Coca-Cola International and Steve Cahillane, President Coca-Cola
Americas were on hand to provide an overview of our business and how our
Company is investing for the future.

Fayard opened the presentation with a
progress report on our 2020 Vision, telling analysts that three years into our
journey we’ve exceeded growth targets for global volume, operating income and
earnings per share. He pointed out these gains have come despite one of “the
most difficult macro-environments in recent history.”

Fayard also noted the strength of the
Company’s cash flow, saying the Company has generated over $30B in cash from
operations in the past three years.

“That capital is continually re-invested in
the business, because reinvesting in our system is what drives sustainable, long-term
value creation.”

Fayard called NARTD beverages a “vibrant,
high growth industry”, fueled by an emerging global middle class with increasing
spending power and an increasing appetite for convenience and packaged goods. He
acknowledged continuing economic headwinds in different markets, but said the
opportunities for growth at all levels, whether incremental or exponential, remain
abundant.

Acknowledging there’s no one-size-fits-all solution
to capturing volume, Fayard walked analysts through several recent and pending
transactions – our partnership with Coca-Cola FEMSA in the Philippines and the mergers
of bottlers in Brazil, Iberia (Spain and Portugal) and Japan – to illustrate
how our system steadily evolves to improve our capabilities and create
long-term value.

Fayard was followed by Bozer and Cahillane,
who provided detailed analysis of their respective groups.

Investing
Together for a Better Tomorrow – Coca-Cola International

Bozer reviewed operating highlights in the Europe,
Eurasia and Africa, and Pacific groups. He said Europe is positioned to capture
profitable growth despite near-term economic headwinds. He described it as the
“largest NARTD retail value pool in the world”, a market where we’ve gained
share in the last three years, have the top three sparkling brands (Coca-Cola,
Coke Light and Fanta), and where we’re still just beginning to build our still
beverage portfolio. He said the Company is also well-positioned to see new
growth once the region’s economic conditions improve.

Japan, China and India were among the
highlights in the Pacific. Bozer spotlighted three years of record sales in
Japan for example, where we have the number one share in sparkling, coffee and
sports drinks. In China, Sprite is the number one sparkling brand and Coke was
recently rated most favorite brand as well. Fanta is also a strong performer,
having passed 100 million unit cases.

Bozer said the opening of two new bottling
plants in China also “shows the continued belief of our franchise system in the
Chinese opportunity.”

For all the strength of Japan and China,
India may hold even greater promise.

“The opportunity in India is actually multiplied when
compared to China,” Bozer explained, “because existing India per capita
consumption is more or less one-third of the existing per capita consumption of
China, so we have a much bigger runway to grow there.”

Bozer rounded out his comments with a discussion of
Eurasia & Africa, saying the region has seen nine percent volume growth
since the beginning of our 2020 Vision and continues to present opportunities
over the next eight years as it evolves and urbanizes. He singled out Russia as
a particularly bright spot. Brand Coca-Cola grew 20% there last year and is now
seeing its highest market share in history. Our Company will further strengthen
our position with numerous activations during next year’s Winter Olympic Games
in Sochi, Russia.

Investing
Together for a Better Tomorrow – Coca-Cola Americas

Steve Cahillane took the podium after Bozer to discuss
Coca-Cola Americas. The group, consisting of North America and Latin America, includes
950 million people, representing approximately half of our Company’s volume.

For North America, Cahillane said a “clear and consistent
focus” has led to 11 consecutive quarters of growth. He said although North
America is a developed market, opportunity still exists thanks to a projected
population increase of 30 million people in the U.S. between 2010 and 2020. Their
demographics – young and diverse – also favor our business.

He said our Company is confident we can leverage that
opportunity thanks to the strength of our brands, particularly Coca-Cola. It’s preferred
two times over our primary competitor’s brand, and that preference continues to
grow. Beyond Coca-Cola, Cahillane also highlighted the strong performance of our
Juice and Juice Drinks and Sports Drinks in North America.

Cahillane told investors our North America business
gained both volume and value share in both sparkling and still beverages, as
well as across all major still beverage categories in 2012.

“This,” he emphasized, “is what a winning portfolio looks
like.”

Cahillane also touched on efforts to accelerate system
investments and reiterated our commitment to raising consumer awareness around
calorie balance and active, healthy lifestyles.

He rounded out his presentation with a discussion of
Latin America, which he said is a source of sustainable growth that continues
to offer tremendous opportunities.

“While we have seen strong growth in our two largest
markets, Mexico and Brazil, the reality is that every one of our Latin America
business units has delivered sustainable and balanced growth over the last
three years”.

Cahillane pointed to the success of Del Valle as just one
example. It’s become the number one Juice brand in Latin America, while also
rising to the number one position in the category in Mexico as well. He also
said Powerade continues to see accelerated growth in the market, and is on
track to become the Sports Drink category leader in Latin America by 2020.

In closing out the Coca-Cola presentation, Fayard
reiterated to the analysts the Company’s faith in its ability to meet its 2020
goals, noting our results tell a story that goes beyond volume gains.

“We continue to take share, and it is
not just volume. It is value share. So our focus is on creating long-term value
for our shareowners. We think we have been delivering, and we expect to
continue delivering that throughout the remainder of our 2020 Vision.”

The Coca-Cola Company (NYSE: KO) is the world's largest beverage company, refreshing consumers with more than 500 sparkling and still brands and more than 3,800 beverage choices. Led by Coca-Cola, one of the world's most valuable and recognizable brands, our company’s portfolio features 20 billion-dollar brands, 18 of which are available in reduced-, low- or no-calorie options. Our billion-dollar brands include Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, vitaminwater, Powerade, Minute Maid, Simply, Del Valle, Georgia and Gold Peak. Through the world's largest beverage distribution system, we are the No. 1 provider of both sparkling and still beverages. More than 1.9 billion servings of our beverages are enjoyed by consumers in more than 200 countries each day. With an enduring commitment to building sustainable communities, our company is focused on initiatives that reduce our environmental footprint, create a safe, inclusive work environment for our associates, and enhance the economic development of the communities where we operate. Together with our bottling partners, we rank among the world's top 10 private employers with more than 700,000 system associates.